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Stocks Decline as French Election Raises Uncertainty

Stocks are mostly lower on Friday as positive earnings from industry leaders including General Electric and Visa could not fully distract from geopolitical concerns stemming from the upcoming French election.

Stocks were mostly lower on Friday as positive earnings from industry leaders including General Electric (GE) and Visa (V) couldn't fully distract from geopolitical concerns stemming from the upcoming French election.

The S&P 500 was down 0.16%, the Dow Jones Industrial Average declined 0.02%, and the Nasdaq fell 0.11%.

The first round of voting in France's closely watched presidential election will take place over the weekend. France goes to the polls Sunday in an election that could decide the fate of the European Union. Eleven candidates will be in the initial round of voting. Any of four of them, spanning the spectrum from extreme-right to extreme-left, could progress to a second round of voting on May 7, when the two most popular candidates will face off.

The outcome of the election grows even more uncertain after Thursday's shooting on Paris' Champs-Elysees boulevard that killed a police officer and wounded three other people. ISIS claimed responsibility for the attack.

General Electric fell 1.5% despite swinging to a first-quarter profit. Net income of $619 million, or 7 cents a share, compared with losses of $61 million, or 1 cent a share, in the same quarter a year earlier. Adjusted earnings of 21 cents a share beat consensus by 4 cents. Revenue declined 1% to $27.66 billion, though topped analysts' estimates of $26.37 billion. GE saw growth in its oil and gas, health care, transportation, and power businesses, among others.

Schlumberger (SLB) shares fell more than 3% after the oilfield services company reported first quarter revenue below analyst expectations for the period. Earnings of 25 cents a share met consensus, while revenue of $6.89 billion came in short of a target of $6.98 billion.

Honeywell (HON) rose 3.2% after exceeding analysts' estimates in its recent quarter. Net income of $1.33 billion, or $1.71 a share, compared to $1.21 billion, or $1.56 a share, in the same quarter last year. Adjusted earnings of $1.66 a share beat estimates of $1.62. Revenue of $9.49 billion came in higher than a target of $9.33 billion. Honeywell also increased the low-end bracket of its fiscal guidance by a nickel, and now anticipates earnings of $6.90 to $7.10 a share.

Mattel (MAT) fell 11% after reporting a wider loss than anticipated and a double-digit percentage decline in revenue over its recent quarter. The toymaker reported a loss of 32 cents a share, 15 cents wider than anticipated. Sales dropped 15.4% to $735.6 million, $70 million short of consensus. Mattel recommitted to a quarterly dividend of 38 cents a share.

Skechers (SKX) topped analysts' estimates on the top- and bottom-lines over the first quarter. The shoe brand earned 60 cents a share, 6 cents above estimates, while revenue came in above $1 billion for the first time in the company's history.

It's been a busy week of earnings with industry bellwethers, including Goldman Sachs (GS) and American Express (AXP) , divulging their recent quarterly performances. So far, more than 16% of S&P 500 companies have reported on their quarters and nearly a third of Dow companies have reported this week. Analysts anticipate blended earnings growth of almost 11%, according to Thomson Reuters.

A flash reading on IHS Markit's U.S. PMI showed a slight decline in April to 52.8 from 53.3. The measure's services index declined to 52.5 in April from 52.8. Both manufacturing and services fell to seven-month lows in April, indicating a sluggish start to spring.

Existing home sales in the U.S. jumped in March at their best pace since 2007. Sales of previously owned properties rose 4.4% in March to a seasonally adjusted annual rate of 5.71 million, according to the National Association of Realtors. The housing market has benefited from strong demand for months.

Retailer Bebe (BEBE) fell 13% after announcing it will close all stores by May this year. The company had 180 retail stores as of the end of 2016, employing more than 2,000 people. Bebe will record a $20 million impairment charge in the third and fourth quarter tied to the closures.

Ocwen Financial (OCN) rebounded 11% on Friday after losing more than half its value a day earlier. The company plummeted on a ruling in North Carolina that prohibited the company from acquiring new mortgage service rights or creating new mortgages. The court has ruled the cease and desist will stay in place until Ocwen can prove its financial stability.